
The US Constitution is a foundational document that outlines the country's values, principles, and rules. It is a cornerstone of American democracy and a reference point for the nation's laws and policies. The Constitution's impact extends beyond the legal realm, shaping the social and political fabric of the United States. Its interpretation and application have been pivotal in landmark Supreme Court cases, such as Keystone Bituminous Coal Ass'n v. DeBenedictis, where the Court weighed private contracts against the state's power to protect public interests. The Constitution's influence on public interest law is undeniable, with references to public interest in US legislation and jurisprudence, shaping policies and initiatives that strive to serve the public good. The interpretation of public interest remains a subject of debate, with varying definitions across societies and disciplines.
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What You'll Learn

State laws regulating private contracts
The US Constitution's Contract Clause, found in Article I, Section 10, prohibits states from impairing contracts. This clause was added to prevent states from relieving influential persons of their obligation to pay debts, which was common under the Articles of Confederation. The Contract Clause also stops states from issuing their own money and from enacting legislation that relieves individuals of their contractual obligations.
The Supreme Court has interpreted the Contract Clause to limit a state's power to regulate contracts between private parties. For example, in the 1819 case Sturges v. Crowninshield, the Court examined a New York bankruptcy law that allowed insolvent debtors to obtain a discharge of their debts by surrendering their property. The Court held that the law did not impair the contract so long as it applied to future contracts rather than existing ones.
However, the Contract Clause does not prevent states from creating laws barring contracts that offend public policy, such as contracts for sex work or child labour. The Supreme Court has also held that "private agreements as well as public contracts were subject to the police power". This means that states can establish regulations reasonably necessary to secure the health, safety, good order, comfort, or general welfare of the community, even if these regulations impact contracts.
In Energy Reserves Group v. Kansas Power & Light, the Supreme Court laid out a three-part test for whether a law conforms with the Contract Clause:
- The state regulation must not substantially impair a contractual relationship.
- The State must have a significant and legitimate purpose behind the regulation, such as addressing a broad and general social or economic problem.
- The law must be reasonable and appropriate for its intended purpose.
This test allows for some state regulation of private contracts, as long as the regulation does not impair the contract too much and serves a legitimate purpose.
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State sovereignty and public interest
The concept of state sovereignty is a complex and multifaceted one, with a long history in political and legal thought. It refers to the autonomy and powers of individual states within a federal system, such as the United States. The idea of public sovereignty, on the other hand, is rooted in the belief that the ultimate authority is vested in the people themselves, as expressed by Jean-Jacques Rousseau in his rejection of monarchical rule. This concept has often been the basis for modern democratic theory.
In the United States, the dialogue surrounding state sovereignty is deeply intertwined with the interpretation of the Constitution and the balance of power between state and federal authorities. The Articles of Confederation, which preceded the Constitution, explicitly recognised state sovereignty. However, the Constitution introduced a framework that prioritised national supremacy, sparking ongoing debates about states' rights and the extent of federal power.
The Tenth Amendment, proposed by the first Congress in 1789, was an attempt to address the concerns of antifederalists and states' rights advocates. The amendment states that "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." This amendment remains a key constitutional ground for states' rights arguments.
Despite the Tenth Amendment, landmark Supreme Court cases such as McCulloch v. Maryland and Texas v. White have reinforced the notion of national supremacy. In McCulloch, the Court asserted that the Constitution was created by the sovereign people, not the states, and thus took precedence over state laws. In Texas v. White, the Court ruled against radical state sovereignty, stating that the Constitution "looks to an indestructible Union," implying that a state could not legally secede from the Union.
The concept of state sovereignty continues to be a contentious issue in contemporary politics, with ongoing debates over policies related to healthcare, drug regulations, and civil rights. State courts are increasingly invoking their own constitutions to provide protections beyond federal standards, reflecting the complex interplay of federalism in American law and governance.
In conclusion, the discussion of state sovereignty and public interest in the United States centres around the delicate balance between state and federal powers. While the Constitution established national supremacy, the Tenth Amendment and ongoing debates over states' rights highlight the recognition of state sovereignty and the importance of preserving certain powers for the states and the people. The interpretation and application of these principles continue to evolve through legal and political discourse.
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Contract Clause challenges
The Contract Clause, found in Article I, Section 10 of the US Constitution, prohibits states from enacting any law that impairs the obligation of contracts. This means that governments may not pass laws that interfere with the contract rights between two parties, whether they are private individuals or government entities.
However, this interpretation seems at odds with reality, as laws often "impair" parties' contract rights. For example, during the COVID-19 pandemic, state and municipal governments implemented measures that prevented landlords from evicting tenants or collecting rent.
The Contract Clause has been the subject of litigation, especially during the COVID-19 pandemic. Litigants protesting eviction moratoria, rent assistance, and vaccine mandates have sought relief under the Contract Clause, with a few recent successes. These triumphs may lead to a reevaluation of the clause and potentially the imposition of laissez-faire economic liberty ideas.
Despite the Supreme Court's history of not invoking the clause to invalidate a state law for over forty years, the Contract Clause remains relevant. Its broad language and historical interpretations provide a basis for legal challenges, particularly regarding economic rights and state intervention.
To analyse whether a law violates the Contract Clause, several tests and principles must be considered. Firstly, it must be determined if the law impairs an existing contractual relationship. Secondly, the court must assess if the adjustment of rights and responsibilities between contracting parties is based on reasonable conditions and aligns with the public purpose justifying the law's adoption. While courts generally defer to legislative judgment, the Contract Clause must be narrowly construed to ensure local governments can exercise their police powers effectively.
In conclusion, the Contract Clause challenges highlight the tension between protecting contractual obligations and the need for state intervention during crises like the COVID-19 pandemic. The recent successes of Contract Clause challenges may lead to a reevaluation of its role and potential implications for economic liberty.
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Public interest and state modifications
The U.S. Constitution Annotated contains provisions regarding "The Public Interest and State Modifications to Private Contracts". This includes a number of restrictions on state powers, such as the prohibition of entering into any Treaty, Alliance, or Confederation, granting Letters of Marque and Reprisal, coining Money, and emitting Bills of Credit.
In the 1980s, the Supreme Court upheld generally applicable state laws regulating private contracts, which were deemed to be in the public interest, against Contract Clause challenges. For example, in Exxon Corp. v. Eagerton, the Court considered the constitutionality of an Alabama law that increased the severance tax on oil and gas extracted from wells located in the state. The law exempted the owners of royalty interests from the tax increase and forbade the passing of any Bill of Attainder.
Another notable case is Keystone Bituminous Coal Ass’n v. DeBenedictis, where the Supreme Court determined that a state's sovereign power to protect public interests took precedence over the impairment of private contracts. The Pennsylvania legislature enacted a law prohibiting mining that would damage existing structures, such as public buildings and homes, by eliminating underground support. This case involved a coalition of petitioners, including a coal industry association and companies with subsurface coal reserves, who challenged the Act's validity. They argued that it violated the Contract Clause by nullifying the surface owner's contractual waiver of liability for damage resulting from coal mining.
In certain instances, the Supreme Court has ruled that a compelling government interest is required for regulations that infringe upon First Amendment rights. For instance, in Buckley v. Valeo (1976) and McConnell v. Federal Election Commission (2003), the Court upheld extensive regulation of finance and expression in campaigns and elections, citing a compelling interest in reducing the appearance of political corruption. However, the Court has also acknowledged limits to this principle, as demonstrated in City of Boerne v. Flores (1997), where it was ruled that applying the compelling state interest test to states violated the Fourteenth Amendment.
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Public interest in environmental protection
In the United States, public interest law is rooted in the commitment of legal professionals to advocate for all members of society, especially those who lack financial resources. Free legal aid is a well-known example of public interest law in the US. The concept of public interest in environmental protection is also evident in other parts of the world. For instance, India's constitution mentions "public interest" in several places, and Public Interest Litigation (PIL) has played a significant role in shaping environmental laws and policies in the country.
PIL is a legal mechanism that empowers citizens to take action against environmental degradation and seek relief from the judiciary. It has been instrumental in promoting environmental protection and conservation, addressing issues related to pollution control, natural resource conservation, and sustainable development. The Supreme Court of India has passed several landmark judgments in response to PILs filed by environmental activists and groups, such as in the case of Vellore Citizens' Welfare Forum vs. Union of India, where tanneries were ordered to close due to the discharge of toxic chemicals into a river.
Additionally, events like the Public Interest Environmental Law Conference (PIELC) bring together activists, advocates, attorneys, scientists, government officials, and concerned citizens to share information and strategies for environmental and social justice. The conference has been a platform to celebrate diverse leaders in the environmental movement and address significant challenges and work towards positive environmental change.
However, challenges exist in defining and protecting public interest in environmental litigation. For example, in Lithuania, the lack of a clear and undivided meaning of "public interest" and its implementation has led to legal uncertainty and hindered the formation of integral legal practices.
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Frequently asked questions
Public interest is a term that refers to the commitment that legal professionals have to advocate for all members of society, especially those who lack the financial resources to advocate for themselves. Public interest can also be used in the context of public history, public interest journalism, public interest engineering, and public interest design.
While the term "interest group" is not mentioned in the US Constitution, the framers were aware that individuals would band together to influence government decision-making and public policy. The US Constitution Annotated also mentions the "public interest" and state modifications to private contracts.
Free legal aid for those who cannot afford representation is a well-known form of public interest law in the United States. The American Civil Liberties Union (ACLU) and the National Association for the Advancement of Colored People (NAACP)'s Legal Defense and Educational Fund (LDF) are examples of legal aid organizations that provide legal services to disadvantaged or vulnerable populations.
The Indian Constitution invokes the term "public interest" in several places, including in the context of fundamental rights, union and state laws, and spending of revenues. However, the absence of interpretation of the term "public interest" by the courts in India has led to misuse of power by union lawmakers.

























